Building Industry Association
of San Diego

Construction of new homes in California continued to decline in October, prompting California homebuilders to call on state lawmakers to reexamine the benefits of the state new-home buyer tax credit enacted earlier this year in hopes of getting similar legislation passed to stimulate the housing sector and the economy, the California Building Industry Association announced today. Read More

On Tuesday, November 17th, the Carlsbad City Council gave the go-ahead to city staff to bring forward economic stimulus measures for the building industry, including a series of permit process improvements and entitlement protection measures.  The measures were developed through the constructive efforts of local builders, industry stakeholders and Carlsbad senior staff members as part of the city’s Development Process Review.  The measures include automatic extensions for local permits, EIR process streamlining, project submittal and plan check improvements, and faster processing time lines.  Collectively the changes represent critical cost-saving improvements for the building industry in a severely depressed economic climate for construction.  These measures will be coming forward in the form of administrative, procedural and code changes over the next year.  The industry will need to actively support the implementation of these changes as the process moves forward.  Please contact the City of Carlsbad Mayor and Council to thank them for their efforts to help our industry recover.  For more information on the specific changes, please contact Scott Molloy at the BIA.

Oceanside Councilman, Jerry Kern is the target of a union backed recall campaign

Oceanside voters head to the polls in just 18 days to determine the political fate of one of its councilmembers, Jerry Kern.  The freshman councilman is under attack by the municipal  employee unions who seek his removal from office on the eve of new contract negotiations.  Why? Because they need a third vote on the council to gain a more favorable contract.  This demonstrates to what extent the unions will go to gain the upper hand.  The BIA opposes the recall. If it succeeds, Oceanside will be decidedly set on a path of economic self destruction.

Recalls are supposed to be a tool available to the voters to oust officials from office for malfeasance or some nefarious action. What is Kern’s crime?  He’s not in the union’s pocket and advocates for sound fiscal policy and balanced budgets.   Such treachery.

Never mind the fact that bloated union pensions and benefits have driven the state and cities like San Diego to near fiscal ruin. Never mind the fact that as a consequence, the state legislature passed the largest tax increase in California history. Never mind that the recall will cost Oceanside taxpayers a half million dollars. Never mind that Jerry Kern is up for re-election in 2010.

This recall is smash-mouth politics and muscle flexing by organized labor. At a time when local governments struggle to meet basic services because of diminished tax dollars caused by the recession, the union’s want more. And if they win on December 8th, they’ll get it.

On December 8, vote NO on the Recall and stop the union power grab.

Radio talk show host, Roger Hedgecock (right) speaks to 2010 BIASD President, Bob Cummings and James Padovano of JPC Restoration at the BIA Monthly Breakfast

Radio talk show host, Roger Hedgecock pulled few punches in his critique of  growing government controls during an address at the Monthly BIA Breakfast in Del Mar today.  The nationally syndicated host said that the San Diego City Council is under the control of local unions and that their actions in the midst of a recession were  ‘swift, decisive, and stupid.’  He chided them for raising fees while the housing market is suffering massive losses and went  on to say that the biggest threat facing every level of government is union pension plans.  He said the current government pension payouts were unsustainable and that reforms were needed.

Hedgecock said  that “for the first time ever, [the people] have elected a government that believes government knows best,” and that the old world we knew was going away.  Referring to the nation as being at a crossroads, Hedgecock said it was “time for a hard look at where we want this county to go.”

Nearly 200 BIA members were on hand to hear Hedgecock’s annual industry address and spent several minutes afterwards in a Q and A on issues ranging from the 2010 Governors race to climate change.

Hedgecock’s national program is heard on more than 100 stations and locally on KOGO radio.

EDITORIAL: Oceanside playing with fire
OUR VIEW: Vote no on ugly Kern recall
By the North County Times opinion staff | Posted: Sunday, November 8, 2009 12:05 am |
We urge a no vote in the recall election of Oceanside City Councilman Jerry Kern.
Please do not be intimidated by the scare tactics of the proponents, including Councilwoman Esther Sanchez. Nor should you trust shadow mayor Melba Bishop, who laughably claims Kern is a threat to mobile-home residents’ safety and lifestyle.
Sanchez and colleague Mayor Jim Wood (he gave $800 to the recall effort) are the elected front men for the city’s police and fire unions and are intent on recapturing a voting majority on the council.
Sanchez’s performance Thursday night on Oceanside’s KOCT’s cable public access channel program, “Journalist Roundtable,” was nothing short of incredible and demeaning of her position, as when she launched into a nasty ad hominem attack on recall opponent David Shore (he apparently had his lawyer license suspended briefly once upon a time —- a fact of no relevance to a Kern recall).
Sanchez substituted for the curiously absent Jim Sullivan, the mobile-home resident who is supposedly the “grass root” behind this union-financed recall drive. In that role, she was absurdly over the top, alleging among other things that Kern is the dictator of Oceanside, that he personally threatens the lives of Oceanside citizens, and that Kern’s “conduct” in office is justification for a $500,000 special election when the seat would otherwise be up election in a mere 11 months.
But in fact, there is no misconduct or malfeasance here, only politics.
What this election is really about is the public service unions’ attempt to tip the balance of power on the council before a firefighters’ contract is negotiated in December. Gaining a 3-2 majority (if Kern is ousted and a Wood ally elected) would be likely to protect their numbers and their lavish pension benefits.
If this campaign succeeds, it will sow bitter seeds —- seeds that Sanchez and Wood may someday regret reaping.
Posted in Editorial on Sunday, November 8, 2009 12:05 am Updated: 11:15 am. |

The U.S. House of Representatives has just passed an extension of the Housing tax credit and NOL fix language. It was an amendment that was added to the unemployment insurance bill. The vote was 403-12.

The bill heads to the White House and is expected to be signed tomorrow.

More information to follow.

source: Construction Industry Research Bureau (as of Oct 09)

A new study released by the Governor’s office says that CA is one of the worst places in the county to do business.  While not surprising to many builders/developers, the information is now quantified. This study is the first to measure the aggregate quantitative impact of regulations in a particular state.

The study finds:

The total cost of regulation on the Real Estate sector was $63,141,397,472
(Direct: $12,490,080,128  and Induced: $50,651,317,344)

The total cost of regulation to the State of California is $492.994 billion which is almost five times the State’s general fund budget, and almost a third of the State’s gross product.

It results in an employment loss of 3.8 million jobs which is 1/10th of the State’s
population.

It equated to $134,122.48 per small business in California in 2007.
GET THE STUDY HERE